A Raleigh company's bragging about its bribes to investors led to a guilty plea today.
Investors and officials with Agri-Ethanol needed lots of cash to build a $220 million plant, so they told investors that they had bribed a state environmental official who had helped them get a permit in 29 days, Ben Niolet and Titan Barksdale report.
One investor called federal investors who eventually had an undercover FBI agent pay the official, Boyce Allen Hudson. Hudson pleaded guilty to public corruption charges today.
Key to raising more money was a guaranteed air quality permit from the N.C. Department of Environment and Natural Resources, explained assistant U.S. Attorney John Bruce in court.
Company officials and investors had a lunch meeting with Hudson in 2004 at a Raleigh restaurant. Hudson had become a lobbyist for the state environment department. Hudson and the company's chief executive agreed that for $100,000 in cash and a 2-year consulting contract worth nearly an additional $100,000, Hudson would help.
State officials said last week that Hudson's efforts did not influence the permitting process.
U.S. District Judge Terrence Boyle said he found it interesting that the company would brag about a bribe in a sales pitch.
"Is that the sort of thing you want to put in a prospectus?" Boyle asked.
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Re: Bragging led to Hudson corruption plea
Most companies of that size have a legal team, consultants, etc. What about this ethanol company, did they have anyone hired to represent and consult them? Just curious after seeing this listed somewhere. General Counsel/Vice President Business Development, Agri-Ethanol Products, LLC Could be a different group.